Understanding Deferred ICMS (Release 9.2 Update)

The fiscal authorities grant some industries in Brazil the benefit of deferring the ICMS tax partially or totally. This means that the payment is not required until later in the process of commercializing goods and the responsibility is transferred to the buyer of the product. This causes a reduction in the applicable ICMS tax.

The system applies deferred ICMS percentages on outbound notas fiscais where the From State and To State are same or different, and only when the ICMS Tax situation Code is either 51 (Deferred) or 90 (Others).

See Understanding ICMS Tributary Situation Codes.

Note: When the system determines the ICMS tributary situation codes, one of the factors considered is the setup in the ICMS Code- Fiscal Value UDC table (76/II). ICMS fiscal value codes for taxable transactions have a 1 in the Special Handling Code field. See ICMS Code - Fiscal Value (76/II) for more information.

The system calculates the deferred ICMS and displays the information in the Nota Fiscal, the NFe, the DANFE and also in the XML files that you generate to report information to the fiscal authority. If your XML report includes transactions with partially deferred ICMS, the system adds a required legal legend to the report.

You use the following programs to work with Deferred ICMS:

ICMS Tax Setup program (P7608B) to set up the deferred ICMS percentage
Stand Alone Nota Fiscal program (P7611B) to enter stand-alone outbound notas fiscais and inbound by company notas fiscais with deferred ICMS
Nota Fiscal Maintenance program (P7610B) to review the calculated deferred ICMS in a fiscal note